Health Insurance
While American health care remains the best in the world, too many Americans do not have access to this health care for a variety of reasons. Over forty million Americans lack health insurance. Many cannot afford to pay the premiums, while others are denied because insurance companies will not cover people with certain pre-existing conditions. Those with health insurance are faced with rising premiums and insurance companies that refuse to pay catastrophic medical expenses. Recently, the debate over health care insurance has become more heated as Congress debates major new reforms. Many of these reforms are designed to curb the excesses of the insurance industry by providing coverage to more Americans and making health care more affordable. It is imperative that the health care insurance industry find more efficient and equitable means of delivering health care to the American populace.
In the United States, there are varieties of healthcare insurance options. Private healthcare insurance is insurance purchased through an employer or private health insurance company. These include employer-based plans or direct purchase plans. The federal government also provides health insurance that is often administered at the state level. Medicare subsidizes healthcare for people over 65 years of age, as well as individuals with long-term disabilities. Medicaid provides assistance to some disadvantaged families. SCHIP, or State Children’s Health Insurance Program, is one of the most successful federal health insurance programs. It is designed to provide healthcare insurance to children of low-income families that do not qualify for Medicaid.
The problems plaguing the healthcare industry center on the practices of private insurers. For many years, private health insurance companies have made record profits by engaging in disreputable business practices. These companies have a well-documented history of denying coverage to people because of pre-existing conditions, finding policy loopholes to avoid paying on premiums, and hiding lifetime claim limits. As a result, many Americans have lost confidence in the healthcare system and are searching for viable alternatives.
For those that have health insurance, many of them are drowning in debt. The average premium for an American family in 2008 was just under $13,000. During this period, every major private health insurer posted record profits. Over one million Americans will file for bankruptcy this year, with a majority of bankruptcies caused by exorbitant medical fees. With the recession causing massive unemployment and making many 401ks worthless, more people will find themselves without health insurance and few options in the event of a catastrophic illness.
There are many proposals that would reform the current healthcare industry. Forcing insurers to cover everyone, regardless of pre-existing conditions, capping out of pocket expenses, and creating a government funded public option, are a few reforms that will create a better healthcare system. The public option, in particular, is designed to lower costs by creating an alternative government plan that Americans can purchase for a reasonable price. The private insurance companies have been funding lobbies and groups that are dedicated to curbing congressional reforms.
All Americans should have affordable health insurance. The government insurance plans, Medicaid, Medicare, and especially SCHIP, prove that there are effective delivery mechanisms for quality care. Private insurance providers are facing major changes. However, none of the serious reform proposals presents a serious threat to private health insurance industry. Yet, in the near future, most Americans without insurance can expect to be covered, and Americans with health insurance will see their premiums lowered. While it will be far from a perfect system, it will be much better than the status quo.